Lighthouse Funds, a private equity fund focused on the Indian consumer sector, has invested ₹700 crore in contract FMCG products manufacturer Parsons Nutritionals.

This is Lighthouse’s third investment from its newly raised fourth private equity fund, Lighthouse India Fund IV. The investment saw participation from co-investors of Lighthouse, including the International Finance Corporation (IFC), a member of the World Bank Group, Evolvence India, HDFC AMC’s Fund of Funds, and other leading family offices, it added.

Founded in 2002 by S.S. Mann, Parsons has been a manufacturing partner for many leading Indian and global FMCG companies operating in India. It manufactures packaged food and beverages such as cookies, biscuits, chocolates & confectionery, malted beverages, and ready-drink mixes.

It has recently also forayed into manufacturing personal care categories such as shampoos and soaps. The company operates multiple manufacturing facilities across five states.

This is the first time that the company has raised external funding from a private equity investor, and the current round of funding shall enable the company to expand its manufacturing capacities in existing and newer product categories for its existing and new clients,” a statement added.

S.S. Mann, Promoter and Chairman, Parsons Nutritionals, shared, “We built Parsons on the foundation of consistently delivering the core promise of quality and operational excellence to our clients, who have entrusted us with their brands over multiple decades. As we continue to evolve as an institution, it was the right time to have a partner in Lighthouse on our next journey of growth. Their long-term vision and familial values perfectly match the DNA of our company.”

Sachin Bhartiya, Co-Founder and Partner of Lighthouse Funds, added, “Parsons has been a preferred manufacturing partner for many large consumer companies and has grown over the years to command a dominant wallet share in the categories in which it operates. With years of manufacturing excellence underpinned by a strong focus on product quality, operational efficiency and distributed manufacturing, Parsons is uniquely positioned to benefit from the macro tailwind of increased consumption and outsourcing trends. This investment fits well into our long-term thesis of consumer products getting more organized, more branded, and premium.

Lighthouse is a mid-market private equity firm focused on growth investments in the consumer and healthcare space. The firm has been investing in India since 2007 and has invested in over thirty companies across consumer brands, healthcare, and speciality manufacturing. It has invested in companies like Unibic, Bikaji and Wow! Momo in the F&B space, and Kama Ayurveda and Nykaa in the BPC space.

It has also recently completed new investments into Kushal’s Retail, a fashion jewellery retailer and Safari, India’s fastest-growing luggage and travel accessories company.

The Rainmaker Group acted as the exclusive financial advisor on this transaction.